Should I use Endowment !!!!!

skyrack

I am buying house £250,000
I have £100,000 from previous house sale = £150,00 to find.
I have an endowment taken out 7 years ago for £80,000 which is still running.

I can afford to pay repayment mortgage on the £150,000

What should I do about endowment ?
Pay mortgage of £150,000 repayment and keep endowment running as savings
or use some of the endowment (been wont reach £80k by 17yrs) on mortgage.
Sell endowment (told this not good idea)

Any help please

Thanks

dunstonh

tell us about the endowment. We cant offer any opinion without knowing about the quality of the endowment. Even the best endowment on track for a big surplus would show a shortfall after just 7 years running. Projections are not sufficient to know how the endowment is doing and what it's future potential is.

skyrack

the projections show it should make approx £60,000 in 17yrs when matured

dunstonh

projections mean nothing though. A projection at 6% is useless if the investment spread is capable of 10% a year or only capable of 2% a year.

Plus projections assume straight line performance and endowments dont work on that basis.

We need to know who it is with, how it is invested and what current and surrender value are.

skyrack

Pheonix (was SunAlliance) endowment with profits
maturity date 2023
amount basic bonus calculated £31500
total bonus to date £2250
monthly payment £130

Hope this helps

dunstonh

I cant type much now as I am off out. However, Phoenix means you should be working on £50k and not 60k. Assume the worst with Phoenix.

You should investigate selling the policy if you can.

marmites_2

Hi, i have a £56,000 mortgage taken out i year ago fixed for one more year.
i have an endowment with royal london due out in 10 years was for £110.000 at the moment it is valued at £46,000 i have a few savings which if i sold the endowment and savings i could pay off the mortgage next year... good or bad idea please??

skyrack

saw independant finance advisor today. Suggested I may be advised to get rid of endowments. Phoned Pheonix surrender value they offered £11,000.